eToro vs Plu500: Fees
One of the critical differences between eToro and Plus500 is how they charge. However, trading spreads, not fees, are the primary source of revenue for Plus500.
For example, say you are trading EUR/USD, and you purchased $100,000 worth of EUR with USD, you will only need to pay a $2.50 spread (the difference between the buy and sell prices). Deposits, withdrawals, trades, and position rollover are all free of charge in Plus500. Nonetheless, there are a few costs that you should be aware of:
- Overnight Funding: This is the amount you pay or receive if you hold a position overnight. For example, if you buy EUR/USD at 1.15 and sell it the next day at 1.16, you will have made $100 (less for any commissions and fees).
- Currency Conversion Rate: When making a withdrawal or depositing in a currency other than your account base currency, Plus500 will use its conversion rate to calculate how much money will be transferred. The company’s current rates can be found on its website.
- Inactivity Fee: If you do not make a trade or deposit in your account for a period of three months, Plus500 reserves the right to charge an inactivity fee of $10 per month for up to 3 months.
- Guaranteed Stop Order: You can use a guaranteed stop order if you want to ensure that your order is filled at a specific price. This will incur an additional fee which varies depending on the market conditions.
eToro, like Plus500, does not have trading fees and profits off of spreads as well. However, unlike Plus500, it charges a $25 withdrawal fee and requires a $50 minimum withdrawal. Other eToro fees:
- Deposit: No fees
- Withdrawal: $25
- Minimum withdrawal: $50
- Overnight funding fee: Varies; see website for details
- Currency conversion rate: From 50 PIPs
- Inactivity Fee: $10